ernieshoe wrote:I just had a thought - why doesn't the RMG pension invest in RMG shares ? This makes sense on many different levels. I suppose they do indirectly already with index tracking funds - but what about direct ownership ? That way we are no longer working for the man (Wall Street/the City) but working in our own interests - and the pension fund gets a boost from a profitable co. with a good p/e ratio. I think someone upthread said the divi. was about 5% - how does this compare to the shite bonds the pension scheme is currently over invested in ?
Ps
Re bonds.
Yep - Apparently RM pension fund is 87% Bonds.
Maybe instead of reducing the pensions they need to rethink their investment strategy.[/quote]
Well next you will be saying we should not have a pay rise so the shares will go up more and axe sick pay and why not cut annual leave for all and while we are at it make everyone work 3% harder than last year and also we can cover those who go sick even without pay for that is our destiny. A RACE TO THE BOTTOM next we will be pissing in bottles and shiting in bags like amazon do is this your vision of a sustainable pension and future of a once great public service/business really come up with a better plan than that proposed by the employer!
ernieshoe wrote:I just had a thought - why doesn't the RMG pension invest in RMG shares ? This makes sense on many different levels. I suppose they do indirectly already with index tracking funds - but what about direct ownership ? That way we are no longer working for the man (Wall Street/the City) but working in our own interests - and the pension fund gets a boost from a profitable co. with a good p/e ratio. I think someone upthread said the divi. was about 5% - how does this compare to the shite bonds the pension scheme is currently over invested in ?
Ps
Re bonds.
Yep - Apparently RM pension fund is 87% Bonds.
Maybe instead of reducing the pensions they need to rethink their investment strategy.
Well next you will be saying we should not have a pay rise so the shares will go up more and axe sick pay and why not cut annual leave for all and while we are at it make everyone work 3% harder than last year and also we can cover those who go sick even without pay for that is our destiny. A RACE TO THE BOTTOM next we will be pissing in bottles and shiting in bags like amazon do is this your vision of a sustainable pension and future of a once great public service/business really come up with a better plan than that proposed by the employer![/quote]
You should reread what I have said and then maybe you can come up with a reply to what I said.
Here we go
Apparently RM pension fund is 87% Bonds.
Maybe instead of reducing the pensions they need to rethink their investment strategy.
Bonds are harder than Currencies as they fluctuate and share prices fluctuate more if you want a pension don't stick all your money on the 2'10 at kempton better invest it long term even with low interest rates is guaranteed not a gamble remember it is your future!
k979aaa wrote:Bonds are harder than Currencies as they fluctuate and share prices fluctuate more if you want a pension don't stick all your money on the 2'10 at kempton better invest it long term even with low interest rates is guaranteed not a gamble remember it is your future!
I said rethink their investment strategy? Stick with the bonds then accept a lower pension.
As bonds will not be able to keep pace with an ever expanding pension pot.
This is taken from an article in the FT from 2010. Our pension fund is struggling because we are lending to the Government, and they are paying us very little for the privilege. Sovereign bonds are government issued bonds - and bonds are how governments borrow. They are like a promissory note, and we are holding a lot of government promises :-
"Pension funds will be forced to buy chunks of the trillions of US, UK and EU long-dated sovereign bonds to be issued over the next few years – but with disastrous consequences, experts say.
Solvency II-type regulations and financial repression – in which governments are pressing institutional investors to buy debt – will push pension funds to invest in government bonds. The problem, however, is that government bonds offer low-to-negative real returns that will eat into pension funds and increase those funds’ growing deficits.
Recent monetary policy in developed markets has already pushed down government bond yields, but experts say the situation could get worse. One concern is that over the long term, a period of high inflation or strong currency moves would lead to a great reversal of government bond prices.
Mr Booth adds: “In markets, risk is always moving. It’s not acceptable to shove people’s money into deposits or government bonds.”
Countries such as Denmark have introduced changes to reduce pension funds’ need to buy debt to match their obligations. Sweden recently changed the way liabilities are calculated. But elsewhere pension funds are piling on government debt.
Stewart Cowley, head of fixed income and macro at Old Mutual Asset Managers, says this is a mistake because the asset class will not match future liabilities: “And yet at the same time, government bonds are being pushed out and force pension funds to buy the wrong thing.
“What we are doing is transferring government risk inside pension funds. I don’t think it is to the advantage of the end user,” he says. "
Having freedom to invest in equities is certainly at the heart of CWU policy with the Wage in Retirement Scheme. Why not invest in RMG directly ? A 51% stake via the pension fund ?
With regards to RM management. The mentality seems to be , that profit can only be made at the expense of the workers....There are of course, many different ways to manage . Incentivising and including the workers in the future of the company has proved to be a successful model to grow many companies. The company was always going to choose the 'Race to Bottom' model, since this country has appeared to have chosen a regressive path in terms of economics. Of course , It is always much easier to knock a house down ,than to build a new one - that requires vision. Something very lacking in this country and hence ,in this country. Sad times.
